IB TO ESA

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  • #38767
    rds01
    Participant

    We have our first conversion. The IB was 108.05pw and the ESA is also 108.05pw which includes a TA of 13.80, so his income is unchanged. When we do the calc on Iworld, CTB goes up as although the applicable amounts are the same (due to a TA) the income is now less, 94.25, as the ESA TA is info only. Is this right? Thanks.

    #109561
    craigb
    Participant

    Hi Ryan

    No I don’t think that is right – the ESA TA should be counted as income (not ‘info only’).

    Section 30 of A14 2010 says “take the full amount of the ESA(C) into account, including any transitional addition.”

    Example 1 (which is on the same page of the circular) is an ESA(c) case, with a transitional addition, and also says that the ESA(c), inclusive of Transitional Addition, should be taken into account in full as income.

    Craig

    Edit as hadn’t seen response in other forum & for clarity:
    Sorry didn’t realise you’d already had a response to this in HB/CTB 2006 Regs – the ESA TA income code can be info only, provided you add the amount of the TA into the ESA(c) amount. It depends how you’ve chosen to set it up, I think either you:
    • set the ESA(TA) field as info only, but add the TA amount to the ESA(c) when you enter it, or;
    • you enter ESA(c) without the TA, but then the ESA(TA) income should not be info only.

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